State govt. issues order for implementing Registered Vehicle Scrapping Policy

Approximately 14.3 lakh vehicles are estimated as fit for scrapping in the State.

Approximately 14.3 lakh vehicles are estimated as fit for scrapping in the State.
| Photo Credit: file photo

The State government has issued an order for implementation of the Registered Vehicle Scrappage Policy of Karnataka -2022, envisaged to phase out old vehicles registered in Karnataka. The order was issued on December 30. 

The policy states that out of the 1.2 crore vehicles estimated to be without valid registration certificates (RC) and fitness certificate (FC) across the country, approximately 14.3 lakh are estimated as fit for scrapping in the State. Over the course of the next five years, an additional 66 lakh registered vehicles in the State will cross the age of 15 and a substantial number of these end-of-life vehicles will be from the commercial category.

The primary objectives of the policy are reducing pollution by scrapping old and unfit vehicles, improving passenger safety, boosting auto sector and generating employment, promoting recycling of vehicle scrap in a scientific manner and formalising the current informal vehicle scrappage industry in the State.

Commissioner for Transport and Road Safety S.N. Siddaramappa told The Hindu that through the national single window system or by calling expression of interest, measures would be taken to set up Registered Vehicles Scrapping Facilities (RVSF) in the State, and these would carry out dismantling and scrapping operations.

“In Bengaluru, such scrapping facility centres will be at three or four points. There is a proposal to provide RVFS at district level,” he added.

The policy states that RVSF will issue “certificate of deposit” as evidence of transfer of ownership of the vehicle. The certificate of deposit (CoD) will be tradeable and shall be a necessary and sufficient document of the owner to avail himself of incentives and benefits for purchase of a new vehicle as may be declared from time to time.  Prior to scrapping, owner of the vehicle has to give an undertaking on criminal record, litigation, and pending dues.

The RVSF should maintain the safe custody of cut pieces of chassis number for six months from the date of vehicle scrapping issue of certificate vehicles scrapping and a physical copy of all documents for two years and scanned copies for 10 years for record and examination during the inspection.

Tax concession

The State government has decided that tax concessions given for newly registered vehicles against the submission of CoD shall be equivalent to 25% of tax paid on the scrapped vehicles (non-transport vehicles). The policy further states that concession in Motor Vehicles Tax for two-wheelers registered before 1986 is ₹500. For light motor vehicles registered before 1995 it is ₹3,000. If the tax paid details are not found, the Transport Commissioner may issue circulars to determine the tax concessions whenever required.

For transport vehicles, tax concession to be given for newly registered vehicles against submission of CoD shall be equivalent to 15% of tax paid for a period of eight years from the date of registration of scrapping vehicles.

An official of the Transport Department added, “Owners of the old vehicles can voluntarily visit scraping facility centres to scrap their vehicles. There is no need to visit RTOs. It is mandatory to scrap government owned vehicles that are over 15 years. Authorities concerned such as transport department and police can also scrap abandoned vehicles through calling tenders.”


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